Indonesia Population: 251,160,124

The Dutch began to colonize Indonesia in the early 17th century; Japan occupied the islands from 1942 to 1945. Indonesia declared its independence shortly before Japan's surrender, but it required four years of sometimes brutal fighting, intermittent negotiations, and UN mediation before the Netherlands agreed to transfer sovereignty in 1949. A period of sometimes unruly parliamentary democracy ended in 1957 when President SOEKARNO declared martial law and instituted "Guided Democracy." After an abortive coup in 1965 by alleged communist sympathizers, SOEKARNO was gradually eased from power. From 1967 until 1988, President SUHARTO ruled Indonesia with his "New Order" government. After rioting toppled Suharto in 1998, free and fair legislative elections took place in 1999. Indonesia is now the world's third most populous democracy, the world's largest archipelagic state, and the world's largest Muslim-majority nation. Current issues include: alleviating poverty, improving education, preventing terrorism, consolidating democracy after four decades of authoritarianism, implementing economic and financial reforms, stemming corruption, reforming the criminal justice system, holding the military and police accountable for human rights violations, addressing climate change, and controlling infectious diseases, particularly those of global and regional importance. In 2005, Indonesia reached a historic peace agreement with armed separatists in Aceh, which led to democratic elections in Aceh in December 2006. Indonesia continues to face low intensity armed resistance in Papua by the separatist Free Papua Movement.

occasional floods; severe droughts; tsunamis; earthquakes; volcanoes; forest fires volcanism: Indonesia contains the most volcanoes of any country in the world - some 76 are historically active; significant volcanic activity occurs on Java, western Sumatra, the Sunda Islands, Halmahera Island, Sulawesi Island, Sangihe Island, and in the Banda Sea; Merapi (elev. 2,968 m), Indonesia's most active volcano and in eruption since 2010, has been deemed a "Decade Volcano" by the International Association of Volcanology and Chemistry of the Earth's Interior, worthy of study due to its explosive history and close proximity to human populations; other notable historically active volcanoes include Agung, Awu, Karangetang, Krakatau (Krakatoa), Makian, Raung, and Tambora

Current Environment Issues:

deforestation; water pollution from industrial wastes, sewage; air pollution in urban areas; smoke and haze from forest fires

note: following the implementation of decentralization beginning on 1 January 2001, regencies and municipalities have become the key administrative units responsible for providing most government services

Independence:

17 August 1945 (declared)

National holiday:

Independence Day, 17 August (1945)

Constitution:

August 1945; abrogated by Federal Constitution of 1949 and Provisional Constitution of 1950, restored 5 July 1959; series of amendments concluded in 2002

Legal system:

civil law system based on the Roman-Dutch model and influenced by customary law

Suffrage:

17 years of age; universal and married persons regardless of age

Executive branch:

chief of state: President Susilo Bambang YUDHOYONO (since 20 October 2004); Vice President BOEDIONO (since 20 October 2009); note - the president is both the chief of state and head of government

head of government: President Susilo Bambang YUDHOYONO (since 20 October 2004); Vice President BOEDIONO (since 20 October 2009)

cabinet: Cabinet appointed by the president (For more information visit the World Leaders website )

elections: president and vice president elected for five-year terms (eligible for a second term) by direct vote of the citizenry; presidential election last held on 8 July 2009 (next to be held in 2014)

People's Consultative Assembly (Majelis Permusyawaratan Rakyat or MPR) is the upper house; it consists of members of the DPR and DPD and has role in inaugurating and impeaching the president and in amending the constitution but does not formulate national policy; House of Representatives or Dewan Perwakilan Rakyat (DPR) (560 seats, members elected to serve five-year terms), formulates and passes legislation at the national level; House of Regional Representatives (Dewan Perwakilan Daerah or DPD), constitutionally mandated role includes providing legislative input to DPR on issues affecting regions (132 members, four from each of Indonesia's origianal 30 provinces, two special regions, and one special capital city district)

elections: last held on 9 April 2009 (next to be held in 2014)

election results: percent of vote by party - PD 20.9%, GOLKAR 14.5%, PDI-P 14.0%, PKS 7.9%, PAN 6.0%, PPP 5.3%, PKB 4.9%, GERINDRA 4.5%, HANURA 3.8%, others 18.2%; seats by party - PD 148, GOLKAR 107, PDI-P 94, PKS 57, PAN 46, PPP 37, PKB 28, GERINDRA 26, HANURA 17 note: 29 other parties received less than 2.5% of the vote so did not obtain any seats; because of election rules, the number of seats won does not always follow the percentage of votes received by parties

Judicial branch:

highest court(s): Supreme Court or Mahkamah Agung (51 judges divided into 8 chambers); Constitutional Court (consists of 9 judges) judge selection and term of office: Supreme Court judges nominated by Judicial Commission, appointed by president with concurrence of parliament; judges serve until retirement age; Constitutional Court judges - 3 nominated by president, 3 by Supreme Court, and 3 by parliament; judges appointed by the president; judges serve until mandatory retirement at age 70

subordinate courts: High Courts of Appeal, district courts, religious courts

Political parties and leaders:

Democrat Party or PD [Susilo Bambang YUDHOYONO] Functional Groups Party or GOLKAR [Aburizal BAKRIE] Great Indonesia Movement Party or GERINDRA [SUHARDI] Indonesia Democratic Party-Struggle or PDI-P [MEGAWATI Sukarnoputri] National Awakening Party or PKB [Muhaiman ISKANDAR] National Mandate Party or PAN [Hatta RAJASA] People's Conscience Party or HANURA [WIRANTO] Prosperous Justice Party or PKS [Anis MATTA] United Development Party or PPP [Suryadharma ALI]

Political pressure groups and leaders:

Commission for the "Disappeared" and Victims of Violence or KontraS Indonesia Corruption Watch or ICW Indonesian Forum for the Environment or WALHI

Indonesia, a vast polyglot nation, grew more than 6% annually in 2010-12. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a fiscal deficit below 3%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2013 faces the ongoing challenge of improving Indonesia''s insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of high oil prices.

general assessment: domestic service includes an interisland microwave system, an HF radio police net, and a domestic satellite communications system; international service good

domestic: coverage provided by existing network has been expanded by use of over 200,000 telephone kiosks many located in remote areas; mobile-cellular subscribership growing rapidly

international: country code - 62; landing point for both the SEA-ME-WE-3 and SEA-ME-WE-4 submarine cable networks that provide links throughout Asia, the Middle East, and Europe; satellite earth stations - 2 Intelsat (1 Indian Ocean and 1 Pacific Ocean) (2011)

Broadcast media:

mixture of about a dozen national TV networks - 2 public broadcasters, the remainder private broadcasters - each with multiple transmitters; more than 100 local TV stations; widespread use of satellite and cable TV systems; public radio broadcaster operates 6 national networks as well as regional and local stations; overall, more than 700 radio stations with more than 650 privately operated (2008)

Indonesia has a stated foreign policy objective of establishing stable fixed land and maritime boundaries with all of its neighbors; three stretches of land borders with Timor-Leste have yet to be delimited, two of which are in the Oecussi exclave area, and no maritime or Exclusive Economic Zone (EEZ) boundaries have been established between the countries; many refugees from Timor-Leste who left in 2003 still reside in Indonesia and refuse repatriation; all borders between Indonesia and Australia have been agreed upon bilaterally, but a 1997 treaty that would settle the last of their maritime and EEZ boundary has yet to be ratified by Indonesia's legislature; Indonesian groups challenge Australia's claim to Ashmore Reef; Australia has closed parts of the Ashmore and Cartier Reserve to Indonesian traditional fishing and placed restrictions on certain catches; land and maritime negotiations with Malaysia are ongoing, and disputed areas include the controversial Tanjung Datu and Camar Wulan border area in Borneo and the maritime boundary in the Ambalat oil block in the Celebes Sea; Indonesia and Singapore continue to work on finalizing their 1973 maritime boundary agreement by defining unresolved areas north of Indonesia's Batam Island; Indonesian secessionists, squatters, and illegal migrants create repatriation problems for Papua New Guinea; maritime delimitation talks continue with Palau; EEZ negotiations with Vietnam are ongoing, and the two countries in Fall 2011 agreed to work together to reduce illegal fishing along their maritime boundary